Gold Holds Decline Despite Ceasefire Talks

Gold prices pared earlier losses to trade around $4,680 an ounce on Monday amid a softer US dollar amid reports of a Pakistan-brokered ceasefire proposal. Investors weighed the potential for a 45-day truce which offered bullion some relief from the forced liquidations seen throughout March. However pressure still remains from a resilient labor market after Friday's jobs report showed 178,000 positions added in March and an unemployment rate of 4.3% which reinforced expectations for the Federal Reserve to keep interest rates restrictive. This higher-for-longer policy outlook continues to weigh on non-yielding assets even as President Donald Trump's looming Tuesday deadline for strikes on Iranian infrastructure keeps a geopolitical floor under the market. Tehran's refusal to reopen the Strait of Hormuz as part of a temporary deal maintains significant supply-side inflation risks which further complicates the path for bullion. Gold remains down roughly 12% since the conflict began.

Gold remained below $4,700 an ounce on Monday following a sharp drop in the previous session, as investors assessed reports of a potential ceasefire in the Middle East. The US, Iran, and a group of regional mediators are reportedly discussing terms for a possible 45-day ceasefire that could pave the way for an end to the conflict. Meanwhile, President Donald Trump issued a fresh ultimatum to Iran, warning of strikes on its power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Tehran has rejected the latest demand and continues to target energy assets across the region. Gold remains down roughly 12% since the conflict began, as surging energy prices have fueled inflation concerns and reinforced expectations of further interest rate hikes. The metal has also struggled to act as a traditional safe haven, weighed down by forced liquidations as investors moved to cover losses in other markets.

Gold slid toward $4,600 per ounce on Monday, extending losses from the prior session after President Donald Trump issued a fresh ultimatum to Iran and warned of strikes on its power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Tehran has rejected the latest ultimatum and continues to carry out attacks on energy assets across the Middle East. Meanwhile, the US, Iran, and a group of regional mediators are reportedly discussing terms for a possible 45-day truce that could pave the way for a more permanent resolution to the conflict. Gold remains down roughly 12% since the conflict began, as surging energy prices fueled inflation concerns and strengthened expectations of interest rate hikes. The metal has also struggled to perform its traditional safe-haven role, pressured by forced liquidations as investors moved to cover losses in other markets.